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Intel slashes divdend by nearly two-thirds to shore up cash as chip giant braces for a tough year

The dividend cut underscores the darker outlook Intel has for the year ahead. The company’s dividend has been level at $0.36 for many quarters and has dipped below $0.30 since 2017, and while dividends do not impact non-investors — can be used to keep investors happy even through rockier patches, such as a bad stock decline or disappointing earnings, and also simply to keep the stock at a premium overall: Intel’s paid out some $80 billion in dividends since 1992 — they are also a bellwether of the company’s bigger state. Intel is explaining the cut in the context of bigger efforts at the company to cut up to $3 billion this year, and up to $10 billion per year by 2025 — which it will be doing by phasing out certain operations, laying off employees, reducing compensation from executives and making other cuts. It’s also taking a bigger bet on its own tech by building out its own internal foundry, which will take some investment (and comes with its own risk of course), alongside the always-clear-and-present threat of competition in the area of cutting-edge chip design. CEO Pat Gelsinger said the latter of these are still on track. 2122 Intel in October 2022 was reportedly gearing up for thousands of job cuts in the quarter ahead. A spokesperson today confirmed that while it has reduced its workforce it has yet to confirm an exact number of people impacted. The company at the end of 2022 employed nearly 132,000 people. It’s also cut compensation for executives and managers, including a 25% cut for Gelsinger himself. The company last quarter saw revenues decline 32% on the year before to $14 billion, which also missed analysts’ estimates. All eyes are now on how the company will be doing in the year ahead with current and future orders. Gelsinger dismissed recent reports alleging chip delays as “rumors” in a call today. Intel slashes divdend by nearly two-thirds to shore up cash as chip giant braces for a tough year by Ingrid Lunden originally published on TechCrunch

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